1 Prepare the income statement for the month of May 2 Prepare the Statement of Retianed Earnings as of May 31st 3 Prepare the Statement of Financial Position (Balance Sheet) as of May 31st May 1st Carol placed $10,000 of her own money into the bank account that was opened to start the business for 100 ownership of the Company May 1st received the following invoices from KickButt Coffee Shoppes for all of the charges that have occurred that are billed to the Line of Credit Equipment and Supplies for opening of the Coffee Shoppe Items Inventory Book Value Economic Life Coffee Beans $1,850 00 Supplies Cups, lids, etc $ 655 00 Dairy Products $ 125 00 Coffee Roaster $6,600 00 10 Years No residual value 2 Point of Sale Registers $4,800 00 5 Years Residual value $900 Recording of Sales Date of bank deposit Cash Sales Date of Bank Deposit Credit Debit Sales 03 May $2,123 25 10 May $3,178 54 10 May $4,258 36 17 May $5,159 57 17 May $4,587 26 24 May $6,147 84 24 May $4,957 24 31 May $6,759 48 31 May $5,024 98 07 Jun $33,300 00 Automatic Shipment of Supplies from KickButt Coffee Date of Shipment Coffee Dairy Supplies Date of Payment 06 May $1,456 89 $458 68 $407 58 16 May 11 May $1,789 74 $501 25 $456 28 21 May 16 May $1,957 58 $657 95 $501 74 26 May 21 May $2,125 58 $798 75 $524 71 31 May 28 May $8,100 00 $925 84 $586 98 07 Jun Payroll Expenses (excluding Carol's withdraws) Date of payment Period Amount 15 May May 1 to May 8 $5,761 29 29 May May 9 to May 22 $6,048 78 May Accrual Payroll May 23 to May 31 $28,800 00 May 4th Artwork and Flyers with coupons 2,000 sheets printed with no expiry dates, paid in cash $500 00 May 20th sent out 900 sheets of the flyers Carol give $125 Cash for her bother to deliver them in the neighborhood homes around the Crowfoot Crossing Mall All are distributed by May 31st May 28th Received from the city of Calgary one bill for Water and electricity for May for $235 00 to be paid in 15 days May 29th Carol makes payment of student loan for University $550 00 from her personnel bank account May 30th Received a payment of $900 for catering services to be provided on June 2nd at a Mall event designed to attract new customers and increase mall traffic May 31st Received an invoice from the Crowfoot Crossings Mall Association for one year membership for $120 00, payment due June 15th May 31st received the first telephone bill for $150 00 and internet services for $70 00 from Bell Canada for the months of May and June Payment due June 14th May 31st made payment to Line of Credit account of $9000 Interest for the Line of Credit for the month of May 1 of balance was also paid May 31st additional information inventory was taken at midnight email Purchase Category Cost of Goods Sold Coffee Products $7,116 00 Dairy Products $3,193 00 Supplies $1,687 00

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 09, 2020

1. Prepare the income statement for the month of May. 2. Prepare the Statement of Retianed Earnings as of May 31st. 3. Prepare the Statement

1. Prepare the income statement for the month of May.

2. Prepare the Statement of Retianed Earnings as of May 31st.

3. Prepare the Statement of Financial Position (Balance Sheet) as of May 31st.

May 1st - Carol placed $10,000 of her own money into the bank account that was opened to start the business for 100% ownership of the Company.

May 1st - received the following invoices from KickButt Coffee Shoppes for all of the charges that have occurred that are billed to the Line of Credit.

Equipment and Supplies for opening of the Coffee Shoppe:

Items & Inventory	Book Value	Economic Life
Coffee Beans	$1,850.00
Supplies Cups, lids, etc	$ 655.00
Dairy Products	$ 125.00
Coffee Roaster	$6,600.00	10 Years - No residual value
2 - Point of Sale Registers	$4,800.00	5 Years - Residual value $900

Recording of Sales

Date of bank deposit	Cash Sales	Date of Bank Deposit	Credit / Debit Sales
03-May	$2,123.25	10-May	$3,178.54
10-May	$4,258.36	17-May	$5,159.57
17-May	$4,587.26	24-May	$6,147.84
24-May	$4,957.24	31-May	$6,759.48
31-May	$5,024.98	07-Jun	$33,300.00

Automatic Shipment of Supplies from KickButt Coffee

Date of Shipment	Coffee	Dairy	Supplies	Date of Payment
06-May	$1,456.89	$458.68	$407.58	16-May
11-May	$1,789.74	$501.25	$456.28	21-May
16-May	$1,957.58	$657.95	$501.74	26-May
21-May	$2,125.58	$798.75	$524.71	31-May
28-May	$8,100.00	$925.84	$586.98	07-Jun

Payroll Expenses (excluding Carol's withdraws)

Date of payment	Period	Amount
15-May	May 1 to May 8	$5,761.29
29-May	May 9 to May 22	$6,048.78
May Accrual Payroll	May 23 to May 31	$28,800.00

May 4th - Artwork and Flyers with coupons - 2,000 sheets printed with no expiry dates, paid in cash $500.00

May 20th sent out 900 sheets of the flyers - Carol give $125 Cash for her bother to deliver them in the neighborhood homes around the Crowfoot Crossing Mall. All are distributed by May 31st.

May 28th Received from the city of Calgary one bill for Water and electricity for May for $235.00 to be paid in 15 days.

May 29th Carol makes payment of student loan for University $550.00 from her personnel bank account.

May 30th Received a payment of $900 for catering services to be provided on June 2nd at a Mall event designed to attract new customers and increase mall traffic.

May 31st Received an invoice from the Crowfoot Crossings Mall Association for one-year membership for $120.00, payment due June 15th.

May 31st received the first telephone bill for $150.00 and internet services for $70.00 from Bell Canada for the months of May and June. Payment due June 14th.

May 31st made payment to Line of Credit account of $9000. Interest for the Line of Credit for the month of May 1% of balance was also paid.

May 31st additional information - inventory was taken at midnight - email